Maine tax debates increase as June 8 election nears

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May 13, 2010

AUGUSTA, Maine: Tax debates are on the rise in Maine and with less than a month until the June 8 primary election, debates and endorsements are expected to boom. Last week the Winterport Area Business Association sponsored a discussion in Winterport. This week the Maine State Chamber of Commerce announced its opposition for Question 1. Next week the Maine Heritage Policy Center is expected to release a report in support of tax reform veto.[1]

The Maine Tax Code People's Veto, scheduled to appear as Question 1 on the ballot, challenges a recently enacted tax code overhaul (LD 1495). The overhaul includes an income tax rate cut, a broadening of the state sales tax to more items and an increase in the state meals and lodging tax. The overhaul passed the Maine Legislature and was signed into law by Gov. John Baldacci. The referendum calls for voters to repeal the package in its entirety.[2]

The ballot language will read as follows:

Do you want to reject the new law that lowers Maine's income tax and replaces that revenue by making changes to the sales tax?
A "yes" vote on Question 1 would overturn the law.
A "no" vote maintains the tax changes.

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